Buying Auto Insurance

You can buy car insurance in different ways, from a variety of sources, depending on the insurance company. Does it make a difference how or where you buy? It might. Let's take a look.

There are essentially four ways to purchase auto insurance. They are:

From an agent (employed representative) of an insurance company

From an independent agent

From an online broker

Directly from an insurance company

Some insurance companies use only one of these methods of selling to customers, others may use a combination of methods. Let's look at the advantages and disadvantages of each.

From an insurance company agentSome national or regional auto insurance companies employ agents who are commissioned sales and support people, and who work directly for the insurance company from small offices located around the country. Allstate, State Farm, and Farmers are examples of companies who work this way. Some people feel that there are benefits to being able to talk to a familiar voice regarding policy questions, billing concerns, renewals, and claim advice. Good agents will even call customers about new discounts or program options that offer cost savings. Just be aware that agents don't administer claims.

From an independent agentThis type of agent is an independent business person or company, often called a broker or agency, that represents a number of different insurance companies. This is most common way that auto insurance, and o...

Learn which auto insurance companies are best - and which are worse. Learn how to evaluate car insurance companies to find the best rates and best customer service. Most insurance companies can be easily investigated using convenient online resources.